Skip to main content

tv   Mad Money  CNBC  October 31, 2013 6:00pm-7:01pm EDT

6:00 pm
tlt there. >> karen. >> liberty interactive linta. >> my costume comes with a tame, too. >> it does. >> that sucker is going, it's going for watching. happy halloween. "mad money" starts now. >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. just trying to safe you money. my job is not to entertain you but educate and teach you. call me. 1-800-743-cnbc. lot of talk about bubbles lately. you hear it from smart people who've been around for ages. you hear it from young whipper snapper short sellers who need the market to come down. so they won't look so stupid when they tell their investors
6:01 pm
how they're doing at the end of year. i have to tell you, the bubblicious crowd, they were at the top of their game today. top of their game earlier this morning. when the market looked really soggy only to work its way back on the strength of some better than expected earnings. allowing averages to rebound before pulling back at the end of the day over worries about a step up in syrian strife. finish in the red. dow dipping 73 points. s&p sinking .3%. nasdaq declining. i'm not going to say the market is too high. that's not the way i think. that's not the "mad money" ethos. see, the market is made up of stocks. a ton of stocks. some of which can be very overvalued and be bubblicious at a given moment. and others, well, they actually may be undervalued at the same time. we witnessed whole markets be completely skitso. look, take 2000. while the nasdaq was riddled with dotcom bombs and going from 5,000 to 2,000, whatever, kept
6:02 pm
plummeting, the zch excluding tech turned out to be cheap. same market. two different markets. we've seen several stocks this year that a lot of people would call bubbles. i prefer to use a different term. a more judicious word. i say they're cult stocks. amazon, netflix and solar city. well, those are cult stocks. okay? that's exactly what they are. teslas. a cult stock. they are stocks where buyers aren't all that concerned with profitability because they're so attracted to the growth that comes from the total addressable markets that these companies seek to corner. let me ask you something. do you think we really care or at least the buyers? do you think they really care how much tesla or solar city can earn? when elon musk, chairman of the latter, crafted a vision of an electric car market dominated by tesla and solar panel on every roof courtesy of solar city? we measure netflix by subscriber growth because it wants to be the de facto global home
6:03 pm
entertainment company. as long as it keeps adding subs and as long as that's all we care about, you got a perpetual motion machine. we don't even want amazon -- that's right. amazon's in too big a hurry to take over the world to be constrained by petty things like profits. it's kicking the can down the road, profit can. but even away from the cult names it's still too easy to call the market a bubble. it's easy to label higher prices the inevitable collateral damage from the fed's attempt to stimulate the economy. tell people they need to sell, sell, sell. because of the bubbles. easy. but it hasn't been right. and i don't think it will be. let me tell you why. why don't we deal with the reality of the situation rather than just bubbles? let's talk about how difficult it is when the day-to-day basis to call something a bubble and then, therefore, have to sell the whole position based on the logic of bubble overvaluation. consider what happened today with two big household names. facebook and starbucks.
6:04 pm
last night the companies reported fantastic numbers. amazing ones. analysts armed to the teeth with bubble poppers wanted to work, they went right to work on the q&a. they highlighted everything that might make you feel like you have two huge bubbles on your hand. you know what? they had double bubbles. double bub -- double bubbles. thank you. facebook gived a monster quarter but seemed as though anyone could focus on a comment about how younger teens have decreased usage. and how the company doesn't expect to significantly increase ads as percentage of news feeds. the result, we had a real dead horse beating about the peaking of facebook. though ad revenue grew by astonishingingly 60%, the company generated $1.8 billion in ad sales. the sense that facebook's best
6:05 pm
times, they're behind them. bubbles. of course, that's fact. of course, that's logic and that revenues for video and instagram haven't hit yet. the company is scratching the service of the ad market. average person spends 350 minutes on the internet every day and desktops, facebook controls one out of every eight of the minutes while on mobile it's more like one in five. they're just getting started. the bubble popping analysts saw it differently, though. the company has a self-imposed limit on how much advertising it can offer without spoiling the user experience with an undertone, lurking. that younger teenagers must already be turned off by the ads and that's why they're fleeing the site. the biggest surprise of the season into a downer. that should never have happened. there's no slowing here. i felt very lonely with that viewpoint after listings to the interplay. 50 to 56, after-hours trading based on the numbers but then began a swan dive that worked into a belly flop as we found about engagement and ad issues taking the stock all the way down to 46.
6:06 pm
ah-ha. the bubble, it's been popped. ah! no. turns out you had to buy facebook down there because the growth here is unassailable. the next thing you saw, the stock closed at $50.21 up for the day. same thing happened, exact same thing with starbucks. despite an incredible quarter, the starbucks call had a feel about it, there was a foreboding sense among the analysts that starbucks can't possibly exceed what it's done already. one point it got so difficult, so, so tense. its ceo howard schultz mentioned the tension between us and you regarding comparable growth guidance had gotten out of hand and said it would be irresponsible to say starbucks would beat the 8% and the 7% overall. lost in the shuffle were the fabulous packaged goods initiatives, double-digit gains there, the tea rollout. we talked about that last week. all those different foods. instead, the mob wanted facts and figures about how the food rollout was impacting same-store sales. management wasn't going to two there. it isn't seem to the management that starbucks may be using its
6:07 pm
stores for launching pads for a supermarket aisle takeaway. frankly i found the q&a here totally nit picking. i respect the fact most of these analysts are trying to build future models, right, trying to build earnings models and how to interpret the initiatives within the confines of the spreadsheet. a common problem when it combs to starbucks. how do you value loyalty? what price? how do you put a price tag on cars and mobile in they don't know how. they don't. starbucks doesn't get the credit where credit is due because they don't know how to do it. schultz pains to point out that the panera problem, the universal problem, the slow through-put on hard to make specials and new products isn't an issue for starbucks. he didn't mention the term panera. i did. the result, once again, a fabulous quarter was met with selling thanks to fears of overvaluation and the stock drops 2 bucks from the get-go. then starbucks claws its way back as people recognize the phenomenal and consistent growth of the enterprise and finishes up for the day. the commonality both conference
6:08 pm
call managers trying to explain how good business is and analysts crafting possible theses about how business as peaked. it's all downhill from here and we're dealing with bubbles. if you think the market is in a bubble mode you certainly sell every share after starbucks. facebook is selling for over 60 time, must be public enemy number one for those who want to burst the bubblicious bubbles. and they're probably eager to short it. if you're trying to make money and know growth is hard to come by, you need to buy, not sell these kinds of companies. sorry. that's ma works. best of breed companies. yes, there are pockets of overvaluation. and in this and every other market we've ever seen. if you decide you've had enough and want to cash out of the whole shooting match you're going to end up selling some of the stocks, best of breed, jut when they're about to rebound. so i've got an oscar wilde everything in moderation style solution for you. it's simple. stocks are hot. they have moved a lot, so take something off the table. we sold facebook from my
6:09 pm
charitable trust because we had a huge gain and we're not greedy. the trust did try to buy starbucks on the dip. we were restricted because i mentioned it earlier in the day. selling best of breed stocks wholesale because bubble talk is in the air just doesn't make sense. as those who dump facebook and starbucks learned this very morning, i say take some stuff off the table, but let the rest run. bob in florida. bob? >> caller: boo-yah, jim. from partly sunny south florida. >> boo-yah, partner. >> caller: i'm calling today about chart industries. symbol gtls. they're involved in all aspects of the change to liquify natural gas as fuel for surface vehicles. it sounds great, but they got crushed today when they reported earnings and lowered guidance. should i get out? buy more? or be patient? >> i was surprised. i was surprised that miss -- i
6:10 pm
need to have sam back on because, you know, when i saw it, i was taken aback by it. i was working on "squawk on the street," the morning show and said i have to speak to sam thomas before i make a judgment what to do. it's worth it to just wait. can i go to sid in massachusetts? >> caller: hi. boo-yah from boston. i'm sid. i watch your show with my dad every day. we're big fans. i'll give it you him now. >> congratulations to you and red sox nation. >> caller: thank you. it's about expedia. sold for a big profit and the rest i took a loss. should i buy again in expedia? >> i don't like to recommend stocks that are up nine the next day because they tend to have profit taking come in. yes, this company is back. it had spent unfortunate time in the wilderness. it now crossed over the river. it's in the promised land of
6:11 pm
travel, and i say buy it. i also say, sid, thanks for watching and don't forget to go trick-or-treating. can i go to richard in new york? richard? >> caller: hi, jim. this is rich from new york? how are you doing? >> i'm doing real well there, chief, how about you? >> caller: okay. jim, i noticed, i was watching one of your shows a couple weeks ago, and one of the top performers you were talking about was the airline. >> yes. >> caller: and you said that you us airways may be a good, if not better value than delta air lines. that's what i got out of it what you said. you still hold that position? >> yeah, richard, my thinking was there, just so we know, there's a caveat. if they can get the deal with amr, if the justice department blesses the deal, then, yes, it's better. otherwise, delta is better. so it's an either/or proposition. depending. okay. don, you would have loved the market chatter today. tiny bubbles indeed.
6:12 pm
when bubble talk pops, and it's around the best of breed stocks, well, you know what, those who sold today, they learned the hard way. "mad money" will be right back. coming up, ace of bass? harman international's earnings report is revuerberating in the market today and the stock is screaming higher. can its chorus of high-end audio brands continue to be music to ears? cramer talks to the ceo. later, shopping spree? costco has been on a steady climb as consumers turn to buying in bulk to try and save a bundle. can you ensure a happy holiday season by putting this stock in your cart, or are its days as a bargain long gone? cramer's on location for an exclusive with costco's ceo. plus, fright fest. while the market flirts with all-time highs, cramer's looking out for ghosts and goblins. on this spooky halloween night,
6:13 pm
make sure your portfolio can withstand the wild witch of wall street. when he plays "am i diversified"? all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call, at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪ ♪
6:14 pm
♪ [ male announcer ] the new twin turbo xts from cadillac. 410 available horses. ♪ room for four. twice the fun. ♪ ♪
6:15 pm
6:16 pm
sometimes a company will report a quarter that is so fantastic, it changes the way wall street views the company's stock. take harman, har, for you home gamers. maker of high-end speakers. you know their name, under harman, gbl brands, among others, as well as dashboard systems for luxury cars that integrate navigation, media, smartphone connectivity into a single so-called infotaniment system. a company who's a number one
6:17 pm
player in every single market it competes. harman is practically married to the automobile market. not only in europe, a business coming back with a vengeance. 9 of the world's 15 largest auto ev ers. this tech is not just making easily duplicated commodity hardware but proprietary infotainment systems. hence why 70% of their business in soft ware. on the sound side system, harman is recognized as the gold standard. high quality professional grade gear used in everything from small venues to enormous stadiums. now, europe is harman's largest market. when the company reported a blah quarter this morning like the red sox's blowout victory over the cardinals in game six last night, it was a big deal. one more data point confirming the turn in europe's economy is real. 11% earnings beat off an 84 cent basis. 17.4% increase over the year. this is a $5.7 billion company
6:18 pm
that wracked up new businesses in the quarter. the stock soared $9. 13%. epic move. harman is now giving you a remarkable 130% return since we last spoke to the ceo back in june of last year. so more than a double, less than 18 months, and even after this run, the stock is 17 times extra earnings, 18% long-term growth. let's check in with the bankable denesh, president and ceo of harman international, we've been around for a long time, learn more about the fabulous quarter and where it is headed. welcome back to "mad money." >> great to be here. >> i need you to do something. people are going to say, well, wait a second. how does the stock go up that much in one day? and the answer is, you checked off literally every box that a stock person wants, right? >> well, jim, companies do well in a sustainable business. if you do four things. one, wait. that's what good american companies do. we're very fortunate to be surrounded by great companies in america. we're a global company, and we
6:19 pm
have to watch out your cost and you need to always look for the new trends. and it doesn't hurt to be in a good company, great luxury car companies, because we learn from them. so with those four things in mind, then comes the execution. execution has to become your dna. >> i think we have to talk about that, because you have three main divisions. infotainment, lifestyle, and professionals. they grew double digits. >> they did. >> you are building products where it is cost efficient. >> yeah, i like it call it best cost -- so mexico is a fantastic example. right now in the world of ha harman, we have a plant in 12 countries but mexico by far the most productive nation we find and how beautiful it is. it's like an extension of the united states as far as we're concerned. bmw, toyota, they're making cars there. we have mexico. we have hungary. hungary is our largest production factory in budapest. these are the best cost country,
6:20 pm
india, china, ukraine. and the key is, you got to have these countries really collaborate with america. the germans. that's where the experience is. >> right. for people who don't know, give the panoply of some of the other brands and where you find them and what cars. >> so you will find jbl professional in all ferraris right now. you will find jbl also in toyota. you'd find it in lexus, harman card in bmws and mercedes and the list goes on. now harman also comes in to all fiat and chrysler cars and we just put in all the lincoln cars worldwide will be shipped with our very exclusive brand. >> okay, now, you also, you talked about innovation. you do a series of acquisitions. here you talk about this one called ryan. $25 million bold one. what you do for patents and brainpower. >> absolutely. always looking for technology
6:21 pm
acquisition. you see, jim, growth is easy. you can always find companies but you have to have a profitable goal to begin with. number two, i'm looking for synergy. so little companies found in holland, this will help $350 million speaker business go gung-ho. unique applications, the acoustic properties were very challenged, we can do that. >> bob olstein, noted value manager, comes on cnbc. he's been recommending your stock for a long time. he always said it's a growth stock but being valued -- do you think people recognize you have double-digit growth in these divisi divisions? >> i hope people realize that traditionally harman has been put in the bucket of traditional automotive axel, mechanical -- >> yeah. as if it's a, you know, guy that you make seeding or make doors. it's not like that. >> it's not like that. highly technology driven. 70% of work we do in software. all application engineering.
6:22 pm
all the modular software system. we're investing heavily in harman cloud. harman inside. so all the big data we can analyze in the cloud and give access to peer-to-peer in the car. so you're driving a car, i'm driving a car. we could be accessing realtime information and keep your systems current. so personalization in the car is the direction we are taking. >> i have to believe you do personalization of the car, it's very difficult for a car manufacturer to switch out harman and put in another company. >> it's pretty hard, barrier to entry, as you will see. once you inspect in the life cycle which is typically five years, almost given. unless you make a mess out of it which means you're going to be blacklisted for the lifetime. so key is you have to deliver, like we are now third generation bmw. we started with -- you have to always -- the day you get the new award, you have to start showing them the pipeline. and interesting thing is we have now 5,200 new patent patterns working on things that come in 17, 18, 19. that's what bmw likes. our carmakers don't ask
6:23 pm
questio questions of our capability of harman. >> a terrific story. down 70, down very big day, you shined. you really shined. this is dineshpaliwal of harman international. it's simple. all of the documents are really easy to read. this is a company you know. this is the kind of company i think you should own. stay with cramer. coming up, shopping spree? costco has been on a steady climb, as consumers turn to buying in bulk to try and save a bundle. can you ensure a happy holiday season by putting this stock in your cart? or are its days as a bargain long gone? cramer's on location for an exclusive with costco's ceo. and later, fright fest. while the market flirts with all-time highs, cramer's looking out for ghosts and goblins. on this spooky halloween night, make sure your portfolio can withstand the wild witch of wall street. when he plays "am i diversified"?
6:24 pm
i love having a free checked bag
6:25 pm
with my united mileageplus explorer card. i've saved $75 in checked bag fees. [ delavane ] priority boarding is really important to us. you can just get on the plane and relax. [ julian ] having a card that doesn't charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u.s. when i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. ♪ in order to go visit my family, which means a lot to me. so ally bank has a that won't trap me in a rate. that's correct. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally.
6:26 pm
at a ford dealer with a little q and a for fiona. tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy four select tires with the ford service credit card. where'd you get that sweater vest? your ford dealer. hey, it's halloween. so in the spirit of going to a big box store to lug home new orleans bags of candy for trick-or-treaters, we're getting a special chance to take closer look at one of my favorite retailers. costco. a stock i like so much and my charitable trust owns it. follow along at actionownersplus.com. three weeks ago, the company appeared to stumble. as they reported a rare six cent
6:27 pm
earnings miss off $1.46 basis and same-store sales at 3%, 40 basis points below what wall street was looking for. you know what, when you look deeper the underlying metrics are strong. strong traffic, risie inine ini and on point to double its store count. expanding overseas where costco already has a decent foot hold. as the stock is now up six points since it reported and that's a very good sign. the customer loyalty, the low prices better in many cases than amazon, and the incredibly terrific staff make this, of course, free samples, too, make this the retailer to own in 2014. don't just take it from me. earlier today we got a chance to catch up with craig jelinek, costco's current president and ceo who took over for the co-founder senegol two years ago. it's halloween, holiday season about to be upon us. how do you feel about the american consumer? what are they saying?
6:28 pm
you're in 39 million households, 71 million card holders. what's the move? >> you know, my view on this at the moment, i think the mood for the consumer is pretty good. i get -- we seem to be, you know, we usually gage our business on the nonfood business, and, you know, the food business and our business, everybody has to eat. but we feel very good about how we're seeing some of our seasonal christmas items selling. our apparel business is very good. our hardware business right now is very good. if i had to say the area that seems to be weak at the moment is probably television sets, computers. but our tablet business, which i think is going to be a big business this holiday season, i think is doing pretty well for us. so i think overall, in our business, the consumer is relatively upbeat. >> now, you sell about $2.2 billion worth of tvs. you are a tremendous hard goods provider. provider of many of the companies i deal with are not having a good experience in apparel and are having a good experience in hard goods. does this have to do with the
6:29 pm
fact that maybe you are taking share nationally because of your prices? >> well, i would hope so. you know, the jury obviously could be out on that. we've had previous very strong years in both the high-end cameras and tvs. my view, there's not a lot of great new technology out at the moment. if you saw where our business, most of our business was going in the 70, 80, and 90-inch tvs. so our consumer has a tendency to be going bigger at the moment, but like i said, the laptops and the high-end cameras are a little softer this year than we would hope. >> okay. a lot of people are saying you are filling big shoes of jim sinegol but you've been side by side shoe-wise for a long time. >> you know, as i've always said, you can't fill jim sinegol's shoes. those are tremendous shoes. i can only be craig. you know, i've spent a lot of time with jim. 30 years. i've gotten to know him well. and i've certainly learned a lot
6:30 pm
from him. and he's always a phone call away. if not he'll call me. we still stay in contact a lot. i see him a lot. we still travel together occasionally. it's all good. it's all good. >> is the craig costco different from the jim costco? >> you know, i wouldn't say a lot different. i mean, you know, one of the things when you do transition, we had a very successful company. you keep the transition simple. there's no reason to make a lot of changes just for the sake of changing and wanting to put your own stamp on things. so, you know, we've got 185,000 employees. they know what they're supposed to do. and we just keep movie ining fo and do what we do and that's trying to create value for our consumer. >> let's talk about international. everybody knows, korea, very successful. japan has been terrific. taiwan, australia, mexico, canada, uk. now you're going to spain. is this the beginning of the next big move for international for costco? >> well, of course, it's the
6:31 pm
beginning. it's the very beginning. and then we'll see how the middle and the end go. but, you know, we should get our first building -- we should open up, be able to open up two in year'14 in spain. as you know, we're looking around in france. let's see how we get spain up and running. we do have an office set up over in spain now. we're starting to look to source goods. so, you know, we're excited about the opportunities over there and we'll take one step at a time. >> is there a universality of the costco principles? for the people who work here? for the people who are cardholders? >> nothing will change. nothing changes. it's going to be the same, same experience, the same view that we have on people. the same view that we have on our business. wherever we go, any country. you'll see, the mix may be a little bit different, but a costco will be a costco. >> let's talk about the impact of costco. fourth largest retailer in the country. fourth largest in the world.
6:32 pm
you are now sourcing in 44 countries. you are now a force when it comes to organic, natural. when it comes to just food in general. to beef, to chickens. are you, yourself, changing the whole sourcing way of international? are you changing the behavior of people who supply to you? >> i believe we are changing the behavior of the way people supply us. particularly in areas like produce. where we've been successful with some of our suppliers, they're looking to actually figure out how they can go set up in other count countries. so we don't -- they can be part of the growth in these other countries. so i would say, yes, people are in this business looking to go international and set up shop in some of these countries and sort to grow produce. >> what are the big trends at costco right now? i know organic and naturals seems to be a very big push. >> well, organic and natural is a very big push. you know, my view on this is
6:33 pm
that i think over time, organic and natural kind of came and went, or would come and go. but i think now it's here to stay. i think most consumers are jumping on the -- and they want to be healthier. they're going to the organic and natural. so that is going to be -- that is going to be big for us. the other part of the business is, we're trying to figure out how we can get bigger in the cosmetic business. we'd like to have people like estee lauder and clinique sell to us. we think there's an opportunity in certain types of cosmetics. we're looking at that business. we're testing a couple of cosmetic -- i won't say racks. i would say small areas in two of our buildings in southern california. so we think there's an opportunity there also. >> well, i know i've got a pick her in your presentation of the suppliers, bullt i also know, i buy kirkland. i buy kirkland because i think
6:34 pm
it's a better brand. now, these great suppliers who are your partners and you talk about in the most recent coupon, our suppliers put together terrific savings on products. how do they feel about the fact that kirkland brand is so good it gives them a run for the money? >> i can't answer how they feel. i know that the kirkland signature brand has been a very good brand for us. we always try to build a quality brand. and, you know, there's a cost of getting into a kirkland brand. we wouldn't mind having a supplier keep us out of that business if their prices were low enough, but, you know, it's the right thing to do for the consumer. we bring value to the consumer with those brands and i'm sure they're not crazy about it, but competition's good. >> you offer great value. does that extend to diamonds? you have $140,000 diamond in this store. >> well, it does. we like to have higher end goods. diamonds are very exciting. diamonds are a very good
6:35 pm
business for us. and we think it's one of those areas that we can bring a lot of value. >> all right. let's talk about what the ethos of cost oweco means. there's a big debacle in the country about the interface of the health care issue with affordable care. you have been at the forefront of providing your employees with the best care. what does it mean for costco? and what could you teach the country? >> you know, all i can tell you is that from our business, you know, life is tough for individuals. and, you know, you've got -- you want to have good employees. you want to provide for your employees. you want them to be able to not have to worry about a lot of things at work. you know, there's enough to worry about in life. but just worry about work. and i think a health care is just one thing that i think is important for people to have. it's one less strain on them. and i think it makes a more productive country. >> let's try to figure out the force of good of costco. you've got loyal people, which i
6:36 pm
understand from jim sinegal means you don't have to train like everybody else does because people come and go. you have 90% renewal rates for cards. what is this for the whole panoply? >> all i can say is you do the right thing for your consumer, try to do the right thing for your employee. our view has always been if you do the right thing for your member, you do the right thing for your employee, you do the right thing for your supplier, the shareholders are going to be rewarded. so just kind of do the right thing and things have a way of working out. >> and your comparable store sale, people were first disappointed at the beginning of october. 5%. turned out you had the strongest. does that say something about the state of retail in this country? >> well, i think one of the reasons, we would have actually, if you look at it from a merchandise standpoint, we were slightly stronger with deflation of gas that's caused our comp business to come down a little bit, and also when you look at the international exchange rates, it's caused our u.s.
6:37 pm
sales in terms of dollars to come down a little bit. i think our overall merchandising business right at the moment is very strong. >> one last question, because i shop costco all the time, as you know. free samples. more or less during the holiday season? >> well, we would -- there's a couple things with free samples. they do have a tendency to clog the aisles. where people can't get around. that being said, we're going to continue to do samples. and we always want to continue to try to make them a little bit bigger to satisfy our members. >> well, thank you, because i don't -- i always pass before i come through a costco. >> we appreciate you just coming. >> oh, fair enough. thank you to craig jelinek, president and ceo of costco. great american company. >> thank you very much. ♪ ♪
6:38 pm
[ male announcer ] eenie. meenie. miney. go. ♪ ♪ ♪ more adventures await in the lexus lx. dare to be spontaneous.
6:39 pm
[ male announcer ] meet mary. she loves to shop online with her debit card. and so does bill, an identity thief who stole mary's identity, took over her bank accounts and stole her hard earned money. unfortunately, millions of americans just like you learn all it may take is a little misplaced information to wreak havoc on your life. this is identity theft, and no one helps stop it better than lifelock. if mary had lifelock's bank account alerts, she could have been notified in time to help stop it. lifelock has the most comprehensive identity theft protection available, guarding your social security number, your money, your credit, even the equity in your home.
6:40 pm
you even get a $1 million service guarantee. that's security no one can beat. don't wait until you become the next victim! call the number on your screen and use promo code notme for 60 days of lifelock identity theft protection and get a document shredder free. call the number on your screen or go to lifelock.com/notme. lightning round is sponsored by td ameritrade. >> happy halloween, cramerica. time for an extra spooky edition of the lightning round. on "mad money." >> buy, buy, buy. >> sell, sell, sell. play this sound then the lightning round is over. are you ready, skee-daddy? time for the lightning round on cramer's "mad money." i start with john in new jersey. john?
6:41 pm
>> caller: jim, aig. i started buying it at 38. i've been selling it above and below 50 for a while now along with some option calls. that's 50-55, through january. when and where does this ride stop? >> i have not been on the conference call yet. i've been going back and forth with stephanie link, co-research director with me of actionownersplus.com, charitable trust. we were unhappy with the revenues and now have to hold them. it was disappointing and i'm surprised. i did not expect a disappointing reporter from aig. we're caught with our proverbial pants down because we have a big gain and didn't take it. let's go to chuck in florida. chuck? >> caller: boo-yah, jim. >> very good, scary. >> caller: from sunny florida. yes, indeed. i want to wish you a happy h halloween. >> thank you. >> caller: jim, my stock has been on a tear this year and keeping with the halloween spirit, i want to know if this stock is a trick or is it a
6:42 pm
treat? ticker symbol, htlc, hicrush. >> carbo ceramics up up 27 points today. i think you're certainly in the right zone. how about mike? texas? mike, mike, mike. >> caller: boo-yah. this is mike down here in texas. dnc. looked like they reported -- >> all right. semi trailers. i have to tell you, i think cummins has come down enough i'd rather see you in cmi. i think that one is the one to -- >> buy, buy, buy. >> one more. let's go to john in new york. john? >> caller: yes, jim. my question is about dry -- >> i'm willing to get behind dryships. i've been waiting and waiting and waiting for the freight index to bottom. it bottom reversed last night. according to my friend, matt, i think we're good to go. buy. let's go to dylan in ohio. dylan? >> caller: hey there, jimbo. big cleveland, ohio, browns
6:43 pm
loving boo-boo-boo-yah for you. >> playing them this weekend. what's up? >> caller: insy. what do you got for me? >> yes. incredibly speculative. if it is, a speculative stock in your portfolio, i will, indeed, bless it. with pleasure. and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. coming up, fright fest. while the market flirts with all-time highs, cramer's looking out for ghosts and goblins. on this spooky halloween night, make sure your portfolio can wi withstand the wild witch of wall street when he plays "am i diversified"? on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed
6:44 pm
that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. [ male announcer ] staying warm and dry has never been our priority. our priority is, was and always will be serving you, the american people. so we improved priority mail flat rate to give you a more reliable way to ship. now with tracking up to eleven scans, specified delivery dates, and free insurance up to $50 all for the same low rate. [ woman ] we are the united states postal service. [ man ] we are the united states postal service. [ male announcer ] and our priority is you. go to usps.com® and try it today.
6:45 pm
6:46 pm
i got to offer up a spooky boo-yah tonight. listen, i'm trying to not eat a whole basket of candy after i go trick-or-treating. like i did last year. gave me a major tooth ache. tonight i want to focus on a whole different kind of basket.
6:47 pm
the diversified kind that i always talk about. where you don't put all your eggs in the same sector. to keep yourself protected in case the market turns sour. speaking of sour, one of my favorite halloween treats is sour patch kids. where was i? am i diversified? call me, tweet me @jimcramer. i'll tell you if your portfolio is diversified enough or if you need to mix it up a little. let's start out with blake in new mexico. blake? >> caller: hey, jim, green chile boo-yah from the land of enchantment. >> thank you. right back. >> caller: all righty. my stocks are salesforce, apple, boeing, tasaro, and one i really want to break bad, specially after the last two days is petrolia. am i diversified? >> all right. just a second. all right. now, this is actually a little complicated. i'm going to have to make some changes. i think salesforce.com is going to trade with apple because they're both two technology companies. i think that boeing is great.
6:48 pm
aerospace. they're doing terrifically. we know it could be even bigger. we learned that last week. tesero, biotech. speculative biotech. i'm going to ask you to keep salesforce and i'd like you to sell -- i think you have to sell apple and let's add -- let's do something auto. hey, you know what, i'm going to give you harman. it was so terrific. i got to recommend it. okay. let's go to jennifer in ohio, please. jennifer? >> caller: jim? >> jen. >> caller: my five stocks are cisco, csco, ford, "f," garmin. orcl, oracle, and slumberj, slb. jim, am i diversified? >> wow. all right. now, let's think because, again, we've got a duplicate here. we're going to have to be careful. first i'm going to call garmin nontechnology, say it's a
6:49 pm
company that has -- how would i characterize it? they've got, you know, i love my garmin when i'm on board my ship. they also have interesting global positioning devices away from that. garmin, a global positioning company. slumberj, oil. ford, auto. owned by actionownersplus.com. cisco also owned by actionownersplus.com. cisco and oracle are too much the same. so what we're going to do is we're going to sell oracle, okay, and bring in a high quality drug company. we're going to bring in johnson & johnson. all right. now i'm going to ameen in new york. >> caller: hey, jim, how are you doing? >> how are you? >> caller: i'm good. i'm on my way to boston. my stocks are ebay, starbucks, rs, ip, and px. >> all right. go to work on this. again, we see -- a pattern here. we got to do some work again. ebay technology, and also
6:50 pm
retailer. okay? more of technology play because of paypal. starbucks, okay, that's an actual out and out retailer. we know that. regions financial. bank company. international paper. obviously the largest paper company in the world. and then blackstone. you know what, these are too much alike. they are both financials. this is private equity. you know what, this portfolio also needs a pharmaceutical. this portfolio, we sell regions and we buy j&j. "mad money" is back after the break. tomorrow, kick off the trading day with "squawk on the street." live from post 9 at the nyse. >> i know you watch tv 4.5 hours per day. that's what actually america does. >> it all starts at 9:00 a.m. eastern. it's estimated that 30% of the traffic in a city
6:51 pm
is caused by people looking for parking. that's remarkable that so much energy is, is wasted. streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years, we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information sends it over the internet so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing; allow this small start-up to go provide a service to municipalities. citi has been an incredible source of advice,
6:52 pm
how to engage with municipalities, how to structure deals, and as we think about internationally, citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants, and that certainly is huge.
6:53 pm
don't ever say this market doesn't give you chances to get in at terrific prices, prices you may not even deserve. take yelp. i told you to be ready for yelp to report a terrific quarter and announce a secondary stock offering to fund its global expansion. that's what the company did, selling a ton of stock today that knocked the online yellow pages down a couple points to where you could snare yelp at a price that could be considered a steal when we look back not that long from now. take yesterday's show, i revealed the pattern the market follows. for days we rallied into the fed meeting. as we were government bernanke would leave the money policy
6:54 pm
unchanged because the economy is soft. the fed tells us exactly what we expected to hear and suddenly they swarm in, crushing the big cyclical companies that might be threatened by the softness in the u.s. economy. even as most of the companies do a huge amount of business overseas. as i predicted yesterday, cooler heads prevail and the same stocks get bought, causing a vengeance. yesterday's trading in high quality cyclical stocks which were knocked down. 3m, united technologies and boeing. end of the day sell program related to middle east turmoil did shave some of those gains off the rebounders. or if you want to take a longer term view, consider the action of two very high quality companies that rally gigantically today on earnings. expeed w peepedia and perigo. expedia told you not to worry saying it would solve its problems and come roaring back. i had to believe them because i co-owned it in new jersey and the online travel company has become the de facto travel department for many who tell
6:55 pm
their employee, save costs, book through expedia. when expedia reported last night, it did everything it said it would on the previous conference call and an 18% move and a very big capitalization stock. when peri fwrks o reported last, i thought the quarter was a good one. i said so here after i listened to management come on the show and tell us about it. the company that makes private label store-brand drugs was going to have a strong rest of the year thanks to drugs coming off patent the company could knock off immediately. that's what happened when the company reported today and the narrative caused the stock to jump 9 bucks. you knew it was going to happen. because the show isn't about reporting what has happened, let me tell you about a discount that surfaced in this session, that you should take advantage of. visa, letter "v." many people decided visa peaked. they were upset about comments. because of the government
6:56 pm
shutdown and death ceiling ra wrangle. the sellers didn't care and knocked the stock down 7 bucks. that dip to me is a buying opportunity for three reasons. first visa is an international story about a fabulous secular trend as consumer switch from paper to plastic. this is one of the most pro-shareholder companies in the world doing big buybacks including today. third, visa has had periodic swoons based on its own candor. only to see it erased in the next quarter. this time it will be no different and at long last another terrific chance to buy what i think will be a nifty discount to where the stock should be trading a few short weeks from now. stay with cramer. mad about "mad money"? immerse yourself in cramer's world. while you watch the show with zeebox. on your phone, tablet or on the web, get sneak peeks. go behind the scenes and join the conversation. download the free app today for the ultimate cramerican
6:57 pm
adventure. by the end of next year, 93 million americans may be without insurance. and why is the white house muzzling insurance companies and stocks are misreading? empress janet yellen. all that up next on "kudlow." [ male announcer ] eeny, meeny, miny, go. ♪ ♪ more adventures await in the new seven-passenger lexus gx. lease the 2014 gx 460 for $499 a month for 27 months. see your lexus dealer. for $499 a month for 27 months. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the
6:58 pm
mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.
6:59 pm
you're not going to get a fight from me that the market has moved up a great keel. you will not get a fight from me from the idea of taking something off the table. i agree with profit taking. i don't agree that the market's in a gigantic bubble and you have to get out now.
7:00 pm
that is fax chous logic as we saw today with facebook and starbucks. i like to say there's always a bull market somewhere. i promise to find it for you right here on mx mr"mad money." i'm jim cramer. i will see you tomorrow. good evening, everyone. i'm larry kudlow. this is the "kudlow report." we're live here at 7:00 p.m. eastern time and 4:00 p.m. pacific. and we begin tonight with another round of developing problems and questions about obama care. now, as you know, americans are still furious at the broken promises and costly surprises of insurance plan cancelations. plus, the obama care computer breakdown continues. and health secretary kathleen sebelius still refuses to come clean about the inside causes and costs of the fiasco. all right. first, tonight, we now know that the obama administration is muzzling insurance companies, telling them to keep quiet about all the canceled

74 Views

info Stream Only

Uploaded by TV Archive on